Of Special Interest

Filters

[x] [x]

11th March 2011

UK Credit card fraud at 10 year low

UK credit and debit card fraud fell 17% in 2010 to £365.4m (€425.4m $592.5m ¥48,978m Y3,894). This is a fall of 40% on the peak in 2008 and is a 10 year low.


The Chip & Pin system continues to generate reductions with a 41% fall in cloned or skimmed fraud. Not mentioned in the press release, because of the public 'hassle factor' connected with this reduction, is the blocking of cards use in other countries unless and until the cardholder contacts the issuer.


Greater public awareness of keeping up to date security software is believed to be a major factor in the 15% fall in CNP (Cardholder not present) fraud by people using stolen details to buy via the internet or telephone.


New card intercepts fraud was the one category rising. Some banks don't require any authorisation before a new card is used and almost all send cards by regular mail not requiring any signature or using any form of secure delivery. The issuer calculation is clearly that the cost of significantly reducing this type of fraud does not outweigh the cost of the fraud.